CATL(SZ:300750) Hua Er Jie Jian Wen·2025-06-27 08:56Core Viewpoint - Xiaomi's recent product launch, particularly the YU7 electric SUV and AI glasses, has garnered significant market attention, with Goldman Sachs raising its target price for Xiaomi and projecting strong growth in revenue and net profit for the coming years [1][3]. Group 1: YU7 Electric SUV - The YU7 electric SUV pre-sale exceeded market expectations, achieving 289,000 orders within the first hour, significantly surpassing the initial target of 150,000 orders in 24 hours [4][5]. - The YU7 is competitively priced with standard, Pro, and Max versions priced at 253,500, 279,900, and 329,900 RMB respectively, maintaining a competitive edge compared to similar models [5]. - The YU7 features advanced technology, including a 96.3 kWh battery with a CLTC range of 835 km, making it the longest-range model among pure electric SUVs with battery packs under 100 kWh [6][7]. - Goldman Sachs has adjusted its electric vehicle delivery forecasts for Xiaomi upwards by 1-6% for 2025-2027, anticipating deliveries of 411,000, 800,000, and 1,174,000 units respectively [7]. Group 2: AI Glasses - Xiaomi's AI glasses are expected to capture 10% of the Chinese smart glasses market by 2025, with projected shipments of 200,000 units in a market expected to reach 2.9 million units [8][9]. - The AI glasses are competitively priced starting at 1,999 RMB, featuring a lightweight design and advanced functionalities, which may accelerate consumer adoption [8]. - The AI glasses market is projected to grow rapidly, with a compound annual growth rate of 56% from 2024 to 2030, mirroring the explosive growth seen in the TWS earphone market [9]. Group 3: Impact on CATL - The success of the YU7 is expected to benefit CATL, as Xiaomi becomes a significant customer for CATL's high-end battery products, with Xiaomi's share of CATL's domestic electric vehicle battery installations rising from approximately 4% to 10% [10][11]. - Goldman Sachs predicts that the penetration rate of CATL's high-end Kirin battery will recover in the second half of 2025, driven by the demand for models like the YU7 [11][12]. - The improvement in product structure is anticipated to enhance CATL's profitability, with projected mixed unit gross profit increasing from 152 RMB/kWh in 2025 to 169 RMB/kWh by 2030 [12].